Ethiopia’s SME Owners Struggle To get 2nd Round Of Funding
According to CCTV Africa, many of Ethiopia’s young entrepreneurs run into trouble when trying to secure funds for their businesses. While some have been granted loans, challenges after growth and paying back funds arise as larger sums of financial backing require bigger assets.
One lending company noted that there are lending ceilings, but options — when business owners approach lenders in groups — are actually available.
“In order to receive a meaningful loan from a decent micro-finance, you need to have a house or a car owner’s certificate,” Million Mesfine, a restaurant owner said in the report. “We are youth, where can we get all this collateral? We hope that they will look at how faithfully we have paid previous loans.”